GE Energy to provide equipment, services for Bahrain power, desalination plant

SCHENECTADY, NY, June 11, 2009 -- GE Energy will supply advanced power generation equipment and long-term services for the Al Dur Independent Water and Power Project, the largest power plant in the Kingdom of Bahrain...

Jun 12th, 2009

• Al Dur project expected to produce 48 million imperial gallons of desalinated water per day

SCHENECTADY, NY, June 11, 2009 -- GE Energy today announced that it has signed contracts totaling more than $500 million to supply advanced power generation equipment and long-term services for the Al Dur Independent Water and Power Project, the largest power plant in the Kingdom of Bahrain.

Developed to help meet Bahrain's growing water and power requirements, the plant is located in the Al Dur area on the Kingdom's southeastern coast. The Kingdom of Bahrain's Electricity and Water Authority is planning additional capacity expansions over the next 20 years to support the country's reported power demand growth rate at 7-10% per year.

"Al Dur is one of the most significant energy projects ever undertaken in Bahrain and is needed to help meet the country's increasing demand for electricity and water from urban and economic development to strong investment activities," said His Excellency Fahmi Bin Ali Aljowder, minister of works and minister in charge of the Electricity & Water Authority. "It is critical for us to have access to proven technology and world-class services that are customized for our specific needs. We are confident that, with its global technology capabilities and strong local presence, GE will support us in meeting the need for responsible, efficient energy for the people of Bahrain."

When completed, the plant is expected to provide 1,250 megawatts of power, which would account for 30% of the Kingdom's existing electricity grid output, as well as 48 million imperial gallons of desalinated water per day.

GE Energy is supplying two steam turbines and four heavy-duty Frame 9FA gas turbines, which are equipped with GE advanced emission control technologies. GE also has signed a 20-year contractual service agreement (CSA) contract for the project, which will support the long-term operability and performance of the turbines.

"As the first installation of our F-class gas turbines in the Kingdom of Bahrain, the Al Dur project demonstrates our commitment to deliver advanced technology solutions and services to support the Kingdom's growing power and water needs, which are critical to providing its citizens with a high quality of life," Steve Bolze, president and CEO of GE Energy's Power & Water business.

"Worldwide, we are seeing a trend toward the integration of power and water production at a single site," said Bolze. "Water and energy are inextricably linked; energy is needed to generate water and water is needed to produce energy. GE has the scale, diversity and expertise to effectively pursue and manage power and water projects around the world."

The Al Dur project further expands the presence of GE's F-class gas turbine technology for projects in the Middle East. GE's advanced gas turbines have accumulated more than 28 million hours of commercial service worldwide since their introduction in 1987, and are among the most efficient gas turbines available for combined-cycle operation. They have set global industry standards for reliability, efficiency and operational flexibility and are fuel flexible with advanced DLN 2.6+ combustion systems that limit nitrous oxide (NOx) emissions. Natural gas will be used as the primary fuel for the units at Al Dur, with distillate as a backup.

Under the terms of the CSA, GE Energy will supply parts, repairs and provide field services for planned and unplanned maintenance for the gas turbine-generators and accessory equipment. Designed to increase the reliability of the power plant equipment, the CSA also guarantees the availability of power, which is especially critical during the summer months.

GE's long-term service agreements are structured to provide customers with predictable maintenance costs while ensuring a steady revenue flow from power plant operations. To date, GE has long-term service agreements including CSAs in place at more than 600 sites worldwide.

GE Energy is a regional leader in power generation, with more than 1,000 turbines installed throughout the Middle East providing more than 70 gigawatts. GE Energy has announced more than US$8 billion in power generation projects in the region over the last two years. GE Energy offers tailored energy solution platforms that also help boost cost efficiency for customers throughout the region.

GE Energy is one of the world's leading suppliers of power generation and energy delivery technologies, with 2008 revenue of $29.3 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

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